The end of the wealth tax put an end to the tax benefit associated with investments in the capital of solidarity companies.
There is nothing like a tax increase to convince investors to invest or make a donation. Certainly, but when this boost is removed, the consequences are immediate. This is what solidarity companies experience this year. For the record, donations of product sharing allow the donor to benefit from a 66% or 75% reduction in income tax, depending on the type of association. This advantage largely compensates for the lower return on these investments with a sharing mechanism.
Will we become responsible savers?
Investments in the capital of solidarity companies, in the form of shares or shares, benefit from a 18% reduction in income from the investment in the limit of an investment of 50 000 euros for a person (the doubling for a couple), to hold its shares for at least seven years. The Finance Act for 2018 increased the percentage of the discount from 18% to 25%, but in the absence of an implementing order this is still the old rate of 18% that applies.
"The authorities have not fully transferred the old ISF scheme to the IFI, which is a historic mistake because the state is depriving itself of one of the two effective levers to combat poverty and exclusion", deplores Frédéric Tiberghien, the chairman of the Finansol association.
In addition, solidarity brokers benefited until this year from a tax benefit on their solidarity tax on wealth (ISF) when they subscribed to shares of solidarity companies. It was even more favorable than the income tax benefit, since taxpayers could deduct 50% of their investment in the capital of solidarity-based SMEs from their ISF to a limit of 50,000 euros.
The abolition of the ISF and its replacement by the property fortune tax (IFI) on 1st In January 2018 this benefit was simply annulled. "The authorities have not fully transferred the old ISF scheme to the IFI, which is a historical error because the State, by restricting public support to the gift only and excluding investments in the capital of solidarity companies, deprives itself of of the two effective levers to combat poverty and exclusion. " deplores Frédéric Tiberghien, the chairman of the Finansol association. Without this tax benefit, individuals subscribe to fewer shares.
"Two-thirds of our members subscribe three shares, or EUR 90, because this is the minimum requirement, while the remaining third takes more than EUR 10,000 and benefits from full tax benefits." The elimination of the EWB advantage is an unknown factor in our fundraising ", says Pascal Pascal, head of the private market in La Nef.
In 2017, this ethical bank raised 400,000 euros with investments that benefited from the ISF payment and 1.6 million euros in income tax. The same situation for Habitat and Humanism: "We estimate that our real estate companies will see a decline of 60% this year in their collection of private individuals." Institutional investors, in particular solidarity funds for saving employees, have increased their investment to enable us to reduce the overall decline in our fundraising. to limit, but this will be of a temporary nature ", is concerned Lydie Crépet, head of the resources development of the association.
Solidarity finances: five winners and a law
The decrease in funding translates directly into the actions of these structures. "Solidarity companies raised 530 million euros in capital or quasi-equity in 2017. We estimate that this amount will be halved this year, which will delay the projects of these companies.", calculates Frédéric Tiberghien.